March 5th, 2024

We’ve said it before, we’ll say it again…

You can’t address the housing shortage in B.C. without the private sector.

Last month, the Province announced its long-awaited provincial housing initiative: BC Builds.

At UDI, we’ve been combing through the details to better understand what’s in it for you.

In summary, BC Builds utilizes low-cost financing, grants, and partnerships to get rental projects targeting middle-income households off the ground. It will leverage underutilized government, First Nations, and non-profit lands, and buildings will rely on sustainable practices.

With the Federal Government coming to the table to double the financing available under the program, it’s a combined $4 billion program, along with another $950 million in grants, aimed at keeping housing below market rate.

The Province expects the program to deliver 8,000 to 10,000 new homes in the first five years. Developments must be able to operate without additional ongoing subsidies, and, to access additional program funding, rents must be set at the levels decided by the Province for at least 10 years.

Grant funding of up to $225,000 per unit is also available per unit, as long as the units are kept 20 percent below mid-market levels for 35 years.

The Province has said that projects set for completion in three-to-five years will be expedited up to 12-18 months using standardized designs, and streamlined municipal approvals.

These details are from the Program Framework, but if you’re like us, you probably have lots of questions already.

How will this differ from the changes in new Provincial legislation, also meant to speed-up housing? What happens to the rest of the projects municipalities are processing for approvals, and how exactly the government intends to guarantee faster timelines? 

We are also seeking answers to:

• Whether the new federal funding comes with different federal requirements?
• What advantages does this program have to a builder over existing Federal programs like the Apartment Construction Loan Program (formerly RCFI)?
• How will the government determine middle income rents—and will these projects be financially viable for the private sector?
• When will the Province be putting forward underutilized provincial lands?
• Beyond the use of standardized designs, what other strategies will the Province use to bring down construction costs, as it has promised?
• The available per-unit grant funding through BC Builds may not even be enough to cover all government taxes, fees, and charges required for a new condo development in Vancouver. Will this initiative work in the City of Vancouver, specifically?

And, what is the incentive for private developers to take part?

You know as well as we do how important this last question is, because … you can’t address the housing shortage in B.C. without the private sector.

UDI has been calling for more partnership opportunities for below-market housing; we’ve been calling for leadership from the public sector to develop innovative designs; and we’ve been calling for housing solutions that reflect the differences in incomes and rents across the province. We can take these wins through BC Builds.

However, we don’t know yet whether the private sector will participate in this program on a large scale.

UDI will keep its members apprised as we find out more details about BC Builds, and we look forward to hearing from you so we can continue to become better advocates for the industry.

Sincerely,

Anne and the UDI Team